Last year, the luxury sector drove the real estate market, and this trend is set to continue in 2023. The desire to purchase a home persists despite rising home prices and predictions of an implosion in the housing market. While forecasts call for a slow year for the American markets, India is expected to have a strong year.
The real estate market will be dominated by younger and first-time home buyers since rental rates have reached an all-time high in recent years. The increasing adoption of work-from-home and hybrid workplaces is also expected to create a surge in demand for buying new houses. In fact, there is a growing trend to invest in second homes or even holiday properties.
The luxury real estate market is thriving even though there is an increase in property prices. Interestingly, the luxury market single-handedly surpassed all sales in 2022 within the industry compared to the previous good year for real estate, which was 2019. Based on previous data and performances, the luxury real estate market is predicted to have maximum traction in the coming years. Luxury apartments and posh villas will be key factors in strengthening the luxury real estate market.
As stated by India Sotheby’s International Realty in their latest survey report, loads of HNIs are planning to buy luxury property in the next two years. Demand for luxury homes is increasing due to the increase in disposable income from NRIs, HNIs and the uber-rich. The luxury house category has gained the biggest share of the total home sales market in 2022.
A sudden inclination towards buying luxury homes has increased after the pandemic and has remained strong ever since. New homeowners are now particularly looking for a house which enhances their life and well-being.
The main factors that led to increased demand for luxury real estate are higher incomes and an increasing appetite to buy new luxurious homes due to WFH and the hybrid work environment taking over. Viewing real estate as a more stable mode of investment than stock markets and the rapid growth of India’s economy during and after the pandemic gives a good impression to invest in its real estate.
Luxury properties are the preferred choice of permanent residency for High-Net-Worth-Individuals (HNIs). Reports suggested a dramatic increase in NRIs’ real estate activity and investment, explicitly indicating their expansionist intentions. We will see a drastic growth in all kinds of housing, be it luxury, independent floors and high-rise avenues. The project’s location will be a key factor in determining the market prospect for real estate investments.
Expectations are through the roof for the luxury real estate market for 2023 after achieving record-breaking success in 2022. Realising you can generate capital gains from owning a home has also significantly increased the purchase of a new house. Real estate development prospects have been boosted by a high demand for homes across all market categories. While there are clear foreign and NRI interests in the luxury market, plots are also gaining popularity due to rising prices. Although independent floors are the preferred investment category for house purchasers who value personal space and solitude, holiday homes are still a luxury enjoyed by the wealthy. The real estate industry anticipates strong growth and looks forward to a year with increased consumer interaction.
